Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHICAGO-As reported last month by GlobeSt.com, General Growth Properties Inc. has $1.12 billion of overdue debt. When the company released its Q4 and fiscal year-end results, company executives said, “We are considering all strategic alternatives and are continuing our discussions with our lenders.”

But now, more than a month later, when Chapter 11 seems imminent General Growth is still seeking alternatives. Earlier this week, the company issued a statement saying “it was continuing discussions with the ad hoc committee of the holders of all series of the Rouse Co. LP unsecured notes and its syndicate of lenders under the 2006 Senior Credit Agreement.” The continued discussions are a result of not reaching a minimum acceptance level from the holders of TRCLP notes to “forbear from exercising remedies with respect to various payment and other defaults under the TRCLP Notes.”

“Although we did not achieve the minimum acceptance levels for each series of notes, we did receive a significant number of consents from the holders of all five series,” says Adam Metz, CEO. “We are grateful for the support we received from the holders of the TRCLP Notes and we are working with the representatives of the TRCLP Notes and the 2006 Senior Credit Agreement lenders to address the credit crisis facing the company.”

An article in today’s Wall Street Journal suggests that Chapter 11 may be the worst possible scenario for the lenders to get their money back and for General Growth to get back on its feet. To read the article click here.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.